Essar Energy (LSE:ESSR) Debt-to-Equity : 2.66 (As of Mar. 2013)

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What is Essar Energy Debt-to-Equity?

Essar Energy's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2013 was £3,418 Mil. Essar Energy's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2013 was £2,392 Mil. Essar Energy's Total Stockholders Equity for the quarter that ended in Mar. 2013 was £2,181 Mil. Essar Energy's debt to equity for the quarter that ended in Mar. 2013 was 2.66.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Essar Energy's Debt-to-Equity or its related term are showing as below:

LSE:ESSR' s Debt-to-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: 2.66

LSE:ESSR's Debt-to-Equity is not ranked
in the Oil & Gas industry.
Industry Median: 0.45 vs LSE:ESSR: 2.66

Essar Energy Debt-to-Equity Historical Data

The historical data trend for Essar Energy's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Essar Energy Debt-to-Equity Chart

Essar Energy Annual Data

Trend

Dec09

Dec10

Mar13

Debt-to-Equity

1.54

0.97

2.66

Essar Energy Semi-Annual Data
	Dec09	Dec10	Mar13
Debt-to-Equity	1.54	0.97	2.66

Competitive Comparison of Essar Energy's Debt-to-Equity

For the Oil & Gas Refining & Marketing subindustry, Essar Energy's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Essar Energy's Debt-to-Equity Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Essar Energy's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Essar Energy's Debt-to-Equity falls into.

Essar Energy Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Essar Energy's Debt to Equity Ratio for the fiscal year that ended in Mar. 2013 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(3417.632	+	2391.971)	/	2181.403
	=	2.66

Essar Energy's Debt to Equity Ratio for the quarter that ended in Mar. 2013 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(3417.632	+	2391.971)	/	2181.403
	=	2.66

Essar Energy (LSE:ESSR) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Essar Energy Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of Essar Energy's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.

Essar Energy (LSE:ESSR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Essar Energy PLC (LSE:ESSR) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.essarenergy.com

Essar Energy plc is incorporated in United Kingdom. It is a holding company. The business activities of the Group of which it is the parent are those of an India-focused energy company with assets across the power and oil and gas industries. The Group comprises four operating divisions are Refining and Marketing India, Refining and Marketing UK, Exploration and Production, Power Generation and Transmission. Refining and Marketing India owns a petroleum refinery on the west coast of India, together with a 50% interest in a petroleum refinery in Kenya, and oil retailing stations on franchise across India. Its products are high speed diesel, motor spirit, fuel oil and superior kerosene oil. The activities of Refining and Marketing include the refining of crude oil and trading, marketing and transportation of finished products and by-products. Refining and Marketing UK products include high speed diesel, motor spirit, fuel oil and superior kerosene oil. The activities of Refining and Marketing include the refining of crude oil and trading, marketing and transportation of finished products and by-products. Exploration and Production has a diverse portfolio of 15 blocks for the exploration and production of oil and gas in India, Indonesia, Madagascar, Nigeria and Vietnam. Power segment operates gas and liquid fuel-based power plants in India and Canada together with a number of mining assets. Corporate comprises Essar Energy plc and its subsidiary companies that provide services to the Group as a whole.

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